Sixteen Nobel Prize-winning economists, dubbed here as "Nobel Psychics," have penned a letter predicting catastrophic outcomes if Trump wins the presidency, despite no budget being proposed or submitted. Their clairvoyant warnings contrast sharply with their praise for Biden's "inclusive" economy, even as his spending policies have fueled the inflation and high interest rates burdening Americans today. The letter conveniently omits the fact that many signatories are entrenched leftists with close ties to the Democratic Party, including Biden's Treasury Secretary Yellen’s husband. This is another example of a leftist stunt welcomed by a biased media eager to malign Trump, revealing more about their political leanings than any genuine economic insight.\
The headline of “16 Nobel Economists” warning that Trump’s election as President will doom us is as predictable as it is absurd. The letter, signed by 16 economists whose average age surpasses even Biden’s, expresses concern over Trump’s potential second-term budgets. Despite no budget being proposed or submitted, these "Nobel Psychics" claim to know exactly what will happen. Their letter also interestingly praises Biden for his “inclusive” economy.
The economists laud Biden’s spending or “investing” agenda, which they argue has fueled the inflation and interest rates currently affecting everyone. However, what the letter omits reveals even more than their supposed foresight.
Shockingly, many of these economists are old leftists. Nearly half are members of a leftist group called Economists for Peace and Security, which includes Robert Reich. Many describe themselves as “Labor Economists” and were politically active during the Anti-Nuke efforts in their prime years. The media also neglected to mention that the primary signatory is Biden Treasury Secretary Yellen’s husband.
This letter is another leftist stunt embraced by a biased media eager to criticize Trump. Journalism has left the building.
In 2021, 15 of these same economists, including Stiglitz, Phelps, Shiller, Hart, Romer, and Deaton, signed a similar letter endorsing Biden’s Build Back Better agenda, which included spending proposals for climate initiatives, healthcare subsidies, schools, housing, and other causes. That bill eventually passed Congress with a $1.9 trillion price tag. Several pieces of a pared-back plan were incorporated into the Inflation Reduction Act of 2022, estimated to cost around $800 billion. The prize-winning economists claimed that Biden’s economic proposals would “ease longer-term inflationary pressures.”
The economists also argued that Biden’s agenda included “a broader conception of infrastructure” that encompassed investments in human capital, research, public education, and healthcare. This Democratic Party talking point redefines expenditures on social causes as “investments.”
How did it all work out? The expert economists were wrong about inflation. They claimed Biden’s spending packages would “ease inflationary pressures,” but those policies actually stoked inflation. When they signed their 2021 letter, the consumer price index stood at 273; since then, it has surged by at least 15 percent, reaching 313. This is called “being wrong.”
Interest rates have also surged since then, negatively impacting prospective homebuyers and those planning large expenditures for autos, home appliances, and school tuitions. The interest rate on 30-year mortgages has more than doubled since the 2021 letter, from 2.8 percent to over 7 percent today. The prime lending rate, used by banks for most loans, swelled from 3.2 percent in 2021 to 8.5 percent today. The economists should reconsider their forecasting abilities.
In summary, the Nobel Psychics cheering on Biden’s policies today are the same ones whose misguided beliefs ignited inflation in the first place.
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